SEC Continues Enforcement of Whistleblower Protection Rules with Action Against Company for Improper Separation Agreement Language and Retaliation

January 5, 2017

On Tuesday, December 20, 2016, the SEC announced an enforcement action against a company for entering into separation agreements with employees containing provisions that restricted their ability to communicate potential securities law violations to the SEC, and for retaliating against a whistleblower who voiced concerns internally.

The action against SandRidge Energy, Inc., an Oklahoma City-based oil and gas company, signals the SEC’s continued commitment to enforcing Dodd-Frank’s whistleblower protection provisions, including by bringing actions for retaliation against employees.